SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 27,1997
ELECTROSOURCE, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-16323 74-2466304
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
2809 Interstate 35 South
San Marcos, Texas 78666
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (512) 753-6500
Previous address:
(Former name or former address, if changed since last report)
Item 5. Other.
As of March 27, 1997, the Company entered into a Note
Purchase and Option Agreement, Convertible Promissory Note and
Option (the "Agreements") with a large domestic manufacturing
company ("Investor"), a Fortune 500 company, with whom it is also
discussing other business arrangements. The unsecured
convertible loan is for $4,000,000 and is due March 26, 2002. A
$500,000 loan previously made by the Investor to the Company was
canceled and refinanced as part of the $4,000,000 Note. Interest
is payable at 5% per annum. The conversion price is $5.50 per
share. The Company also granted Investor a two year stock option
for 500,000 shares; 275,000 shares at $7.00 per share and 225,000
shares at $9.00 per share.
Item 7. Financial Statements and Exhibits.
A copy of the News Release is attached as an exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
ELECTROSOURCE, INC.
/s/
By:
James M. Rosel
Vice President Finance
and General Counsel
Date: April 3, 1997
EXHIBIT
Electrosource, Inc.
Manufacturers of the Horizon Battery
2809 Interstate 35 South, San Marcos, Texas 78666-5930 USA
TEL: 512-753-6500 FAX: 512-353-3391
ELECTROSOURCE NEWS
CONTACTS: Robin Roberson John Liviakis
Electrosource, Inc. Liviakis Financial Communications, Inc.
(512) 753-6500 (916) 448-6084
[email protected]
ELECTROSOURCE RECEIVES $4,000,000 INVESTMENT FROM FORTUNE 500 COMPANY
- In Discussions for Additional Arrangements -
San Marcos, TX (April 3, 1997) - ELECTROSOURCE, INC. (NASDAQ:
ELSI) announced today that a large U.S. manufacturer ("Investor") has
invested a total of $4,000,000 in Electrosource in the form of a five-
year note, convertible into common stock with interest at 5 percent
payable in kind, and no principal payments until maturity. The
conversion price of the note is $5.50 per share, and the Investor also
has a two-year option to purchase an additional 500,000 shares of
Electrosource common stock at $7 per share for 275,000 shares and at
$9 per share for 225,000 shares.
In addition to the financial agreements, Electrosource and the
Investor are continuing discussions that were initiated in July 1996
regarding cooperative arrangements to further develop, manufacture and
market Electrosource products and technology. As previously
disclosed, the Investor provided a $500,000 loan to the Company in
March 1997, which has been canceled and refinanced as part of the
$4,000,000 convertible note.
The Investor is a "Fortune 500" company with annual sales
exceeding $3 billion. It has worldwide operations and particular
expertise in materials technology, process technology and
manufacturing operations.
Commenting on the announcement, Electrosource Chairman, President
and CEO, Michael G. Semmens, said, "This is an important step in our
efforts to become a leading manufacturer and supplier of advanced
energy storage technology and systems throughout the world. We have
been pursuing a strategic alliance with a leading multi-national
technology and manufacturing company to assist and partner with us in
the final development and ultimate mass-production and distribution of
our patented Horizonr battery and other energy storage tech-nologies.
This investment is a an important testimonial to both our technology
as well as our management team."
Electrosource, headquartered in San Marcos, Texas, designs,
manufactures and markets proprietary advanced energy storage
technologies and systems.
This release contains forward-looking statements regarding future
product development and sales growth that involve risks and
uncertainties and actual results could differ materially from those
discussed in this release. Risks, including manufacturing risks, risks
of product development and uncertainty of market acceptance, as well
as others, are detailed from time to time in the Company's Securities
and Exchange Commission filings.
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